The

Case

Presented by: Gaurav (191139) Manan Kohli (191145) Midhun A (191148) Parashar Deepak (191155) Rohit Baliyan (191165)

Introduction

All Out
Karamchand Appliances Pvt. Ltd. (KAPL) was established in 1989 Started by Arya brothers Mosquito repellent industry is a 4 bn rupees industry in India KAPLs Brand All Out is almost a generic name for liquid vaporizers. All Out was having 69% market share in liquid vaporizer industry in 1999. ( Result of conversion of large no. of customers to vaporizer users).

All Out
KAPL managed to wrest market share amidst stiff competition from corporate giants like GSLL AND HLL Vaporizer by Earth Chemicals Co. Ltd Pluggy from Matsushita Electronics Common methods: Traditional methods, Creams, Coils, Mats, Sprays, Vaporizers.

Mosquito Repellant Market

Mat Coil Vapour Cream

25 . 3 (5% )

25 . 3 ( 5 %)

12 ( 3 %) 52 ( 13 %) 152 38 % 318 . 7 ( 63 %) 184 ( 46 %)

136 . 6 ( 27 %)

Total market = Rs506Cr ( 1996 )

Total market = Rs400Cr ( 1999 )

Market Growth
350 300 250 200 150 100 50 0 Mat Coil 96 25.3 Vaporiser 99 184 152 136.6 52 318.7

25.3

12

Cream

Vapour Market Share

All Out 2 ( 5 %) GK Bayer Jet 0.5 4 . 5 ( 1 %) ( 9 %)

11 ( 21 %) 19 ( 40 %) 25 ( 55 %) 36 ( 69 %)

Total Market =Rs 46Cr (1997)

Total Market =Rs 52Cr (1999)

Distribution
% Presence
60 50 40 30 20 10 0 All Out All Out GN GN RC RC 18 54 55

Product
Pioneer Effect: First of its kind. Technically Sound: Dependable Japanese Technology. Smoke Free, no residue, almost odorless. Extra MMR Long lasting. Ease of Use.

Pricing
High price to cover the cost of expensive components purchased from Matsushita Electronics. Later reacting to market sentiments the price was reduced by increasing the in house manufacturing of components. Premium Pricing, creating an impression of a premier product. Flexible pricing to accommodate market sentiments. KAPL was proactive with its flexible pricing strategy. It set a trend in the process. GSLL followed it up with a similar strategy.

Pricing (contd..)
GSLL while struggling to maintain its market share launched a 60-night refill pack priced at Rs.63.(against All Outs 45-night pack at Rs.54). GSLL had to support this new scheme using promotions. GSLL market share decreased by 9.3% after KAPLs Deadly Exchange Scheme. Further reduction of price by GSLL had little effect on its decreasing sales.

Pricing
Per unit price(Rs)
225

Skimming Bundling

135

Deadly offer
99 90 27 90

Loss leader

Deadly exchange offer

94

95

Year

96

98

99

Place
GSLL and R&C were multi-product giants whereas KAPL was a newcomer with a single product. Hence the former companies (before launching vaporizers) already had well established distribution networks. The only P in which KAPL was behind its major competitors was Place. Of the 9 lac outlets across the country that sold repellants, KAPL was available in only 18% Percentage of outlets: R&C 55%

Promotion
The advertisements were initially handled by Avenues and later by HTA but to no effect The ads of All Out were unique and immediately caught the imagination of the masses. The ad had high mind recall. Since KAPL themselves handled the account the advertisement cost was quite low.

Promotion (contd)
Other strategies: 1. Hindi Movie Video Cassettes 2. FM Radio 3. News Program Sponsors 4. Movie Song/Dance/Fight Sequence sponsoring on satellite TV Channels. Deadly Offer and Deadly Exchange Offer Macharoen ka Yamraj Share of voice 31% in 2000 compared to 5% of GSLL

Perceived Risk

Perceived Risk
Consumer's level of uncertainty regarding the outcome of a purchase decision Consumers attempt to reduce their anxiety by collecting more information and by seeking the recommendations Manufacturers and marketers try to reduce this risk with reassuring guaranties

Types of Perceived Risk

Perceived Risk in the case of All Out

Social Risk Mosquito-cidal against some religious beliefs Increasing Consumer awareness But Limited

Physical Risk Usage limited to indoors only Electricity Dependent Harmful Chemicals and toxins

Perceived Risk in the case of All Out (contd)

Functional Risk
Cream Coil Spray Mat Vapour

Attributes
No Physical contact with Chemicals Odorless Application Ease Longevity Consistency

Last 25 % of refill is ineffective

Perceived Risk in the case of All Out (contd)

Psychological Risk All Out is a generic product, so opportunity for competition Consumer accept other brand refills for All Out Consumer perceive mats & coils to be more productive due to their strong fume

Financial Risk Consumer consider it costly

Time Risk

Risk Handling by Consumers

Seek Information Consumers are brand loyal Select by brand image Rely on store image Buy most expensive model Seek reassurances

Future
Consumers becoming more aware of toxicity Invest in R&D to develop less toxic and efficient product Communicate it very clearly It can consolidate the position if manages to do so Venture into more products as a disruptive technology can destroy the entire company (since it is a single brand company)

TH A N K

Y O U